One of the largest private agencies serving Nebraska foster children has filed for bankruptcy, just days after another agency notified the Nebraska Department of Health and Human Services that it could no longer afford to work as a major contractor for the state system.
Visinet Inc. on Thursday filed for Chapter 11 bankruptcy reorganization, according to a press release from the agency.
Until Thursday, the state had used Visi-net to help provide and oversee services for wards of the state in parts of eastern Nebraska.
The group had hoped to continue much of its work for the state while it reorganized itself financially, according to the release, but the state voided its foster care contract after the filing, officials told the Lincoln Journal Star.
The group said that it hopes to work out a way to continue providing services but that it cannot meet all its obligations under an expansion of services requested in a new contract with the state.
Attempts to clarify the nature of that expansion were unsuccessful late Thursday.
Another private contractor providing services to the state’s foster care system, Cedars Youth Services, informed the state in recent days that it intended to end its contract.
Among its concerns: a mounting gap between the cost of providing services and the amount the state was willing to pay.